Business Plan For Sandton Fitness Centre Marketing Essay

Business devise For Sandton fittingness focus on Marketing bear witnessSandton seaworthiness core and salmon pink spa is a new secondary school that is for eitherone ( masculine and female) that take a leaks a comfortable environment for ein truthone to pursue their fittingness goals. It is situation in Sandton at Johannesburg. Sandton seaworthiness centre and beauty spa bewilder the some satisfactory/best equipment, best personal trainers, dietician, special classes and psychologists.Sandton seaworthiness centre and beauty spa is located in the urban where passel own a very active life and very little m to spend on fittingness and wholesomenessy life. Heart disease and obesity be on record high ca employ increase in wellness golf- niner demand.Low income merchandise segment is ignored by key competitors in the food tradeClub memberships in South Africa moderate increased every social class since 1994 and a strong market makes a strong crinkle. We be a sol id investment beca subprogram lead-up sports gyms on number take in 1,000 new members per year.This give every last(predicate)(prenominal)ow our duty to suspension even in less than five days.Our hostelry, Sandton fitness touch on bequeath declare its members quality religious services and benefits that no other club weed offer. We want to take investments and use them wisely in suppose to create a sports facility that pleases customers. In sports clubs, the top five most productive programs/services ar personal training, abrase therapy, food/beverages, an aquatics program, and a tennis program. Our gym go away grant every last(predicate) of these services and gum olibanum increase our productivity. We give build a giving(p) complex that allow include a pool, personal training facilities, basketball courts, a daylight spa, tennis courts, and many other features to attract clientele. In Sandton were our fitness marrow result be situated has 20 to 64 ye ar hoary population. This means not whole that our clientele pools is large scarcely that these plurality are experienced and put one over attained the socioeconomic status that allow foring be needed in order to attain and maintain our service.In conclusion, our profitable new gym go out be a coordinate effort among four aspiring entrepreneurs to create the ultimate in sports and blank fitness.Company DescriptionSandton physical fitness nitty-gritty and steady Spa are focused on teenagers (13+), juvenility adults and adults. Sandton physical fitness Centre has its distinguishable programs for different age groups. Sandton Fitness Centre is 55,000 square tip offt. It is located in 1560 Grayston Street, in Sandton.Sandton Fitness Centre and stunner spa to a fault consume a child grapple centre, where they look subsequently children while their parents are busy with their feedouts. The child deal centre green goddess surely pull off for 40 children unless lo nesome(prenominal) 10 infants.Sandton Beauty Spa is a new destination crack customers the combination of full body massage, waxing, body treatments, facials, manicures, pedicures, anti- aging treatments and lasers.Company caper relationshipFitness Centre and Beauty spa was created on 14 February 2007, to provide busy and working population with a fitness centre and a beauty spa. Fit centre and a beauty spa all combined surprised and made state excited.Fitness centre is in camera financed by businessman and investors. More than 80,000 was invested into the attach to. The money covered equipments, ad campaigns, flyers, posters, advertising an internet and to create a domain name. the bon ton struggled for long, most people preferred the gym not the beauty spa, because they were complaining and worried closely the make ups. So the centre had to lower them a little bit. gross revenue were also less. So Fitness centre decided to make specials every after two months and on spec ial occasions like Valentines Day and birthdays, but exclusively on the beauty spas side. The gym price remains the same. At the end things got better.Mission statementsCreate members workout environment that sanctionrs confidence in our clients. Fitness centre and beauty spa provides our members with beauty treatment at a fair price and competitive price, while providing with the high aim of customers service and satisfaction. Our business is focused on everyone most in particular celebrities who keeping a lot about fitness and looking good.Product and serveFitness Centre and Beauty Spa go are the take upersFitness centre has a professional personal trainer who will assist everyone in the gym.Our personal trainers assist you with a engagement program.Fitness Centre also has a commensurate dietician who will assistant each(prenominal) member on his/her best and wellnessy food to eat. inner the gym there are paramedics who are there to help people if may be a member get s injured or collapses, or any other sickness, they are there full prison term.Fitness Centre has also hired a qualified psychologist, who will help with lot of stress and encouraging them for a way forward to live a wellnessy life.Beauty Spa ServicesFull body massageWaxingManicurePedicureAnti ageing treatmentsFacialsLasersOffer creams and beauty product on saleIndustry analysisSizeThe health and fitness market is very large and liquid growing to a greater extent and to a greater extent because of the health revolution people have become more health conscious in an effort to preserve and prolong their lives collect to the fast pace living style of today.The fitness and health constancy is a 40 billion dollar that is fast paced and groundbreaking and highly competitive.In South Africa the market is not matured yet it is still in its infancy at the moment.GrowthThe international health and fitness persistence has expectant approximately 12% for the past decade with the ridda nce with 2009 it decreased 3 % due to the fall down of consumer spending because of the ball-shaped credit crisis.Locally the health and fitness industry has also grown especially because of the performance of one the leaders of the local health and fitness industry Planet fitness was voted the best performing companies of 2010 despite the slow down of the economy.Sales protrusionionThe over all industry is expect to only grow 10% because of the high unemployment and poor consumer spending consequence that people are reluctant to spend their money spending only on absolute necessities.Industry structureThe South African health and fitness industry is dominated by a handful of large firms be perfect(a) officious, Planet fitness and Smart Gym. However these large health and fitness service providers are not exploring the entire market and get together the specific needs that we have been able to identify in the market. They are to large to satisfy the distinctive needs of the entire market in terms of innovation and creativity and personalised serviced as well as the diminution of services. They are also slow to react to changes in the business environment as well as the new trends and developments in the population of health and fitness .For type the trend now is the simplification and ease of anything and everything that would complicate our life fashioning use of creative and innovative ideas to increase life quality and prolong lives as long as possible.Critical Success Factors1. inscription At the Top.2. Qualified Professional Staff.3. Plan Then Proceed.4. Location, Location, Location.5. Right Size Right Cost.6. Program to Match involve7. Effective Integration.8. Right Price Minimal Discounts.9. Commitment to Marketing and Sales.10. Commitment to Outstanding Customer Service.11. Measure, Manage and Measure Again.12. Effective Communications with Members. solicitude Team and Company StructureThe management team is comprised of all the founder s of The Santon wellness and Fitness Center Keleabetswe Sepengused, Marcelino Maliti Moises, Gonste Bokaba and Kgabo Lucia Mathibe. theatre director of Marketing and gross revenueThe director of selling and sales is responsible for all the marketing of the company needs for example promotion, advertising, market research and salesMrs. Keleabetswe Sepeng used to be the marketing and sales manager for Virgin Active from 2005 -2011 she will take charge of the same post in the new company. Mrs Sepeng is highly recognized in the industry and has a masters degree in marketingChief financial ships officerThe political boss financial officer is responsible for the over all financial control and management of the company.The duties and responsibility involve creating control, managerial and evaluating measures for proper, ethical and legal financial controlMr. Marcelino M Moises will take the bearing of chief financial officer Chief Financial Officer since he has the most qualified and has the most experience in the field after having worked for Planet fitness for over 10 years Mr. Marcelino has a Bachelor of Accounting Sciences and BA degree in Business AdministrationsChief Executive OfficerThe chief executive officer is the highest property in the company, the duties and responsibilities of the CEO is the overall streamlet of the entire organization, make decisions for the entire organizations .planning ,leading, organize ,controllingMr. Gontse Bokaba will take the position of CEO Chief Executive Officer of the organization.Mr. Gontse Bokaba has worked for SAA South African send out Lines for more than 5 as the chief operations manager.Mr. Gontse Bokaba has a get the hang degree in Business ManagementChief Operations OfficerThe chief operations officer is responsible planning, coordinating and managing the operations of the company theses include office administrations, overseeing that both products and services areMrs. Kgabo Lucia Mathibe will exercise the position of COO Chief Operations officer or Managing Director because she has been the manager at a day Spar for many years so she has both insight and knows the beauty industry in and out.Mrs. Kgabo Lucia has a degree in Business Administrations and a master in kind resource management. As well as head the human resources segment seeing as he has experience in recruiting and staffing.CEOGontseDOMKeleabetsweCFOMarcelinoCOOLuciaIndustry structureThe South African health and fitness industry is dominated by a handful of large firms being Virgin Active, Planet fitness and Smart Gym. However these large health and fitness service providers are not exploring the entire market and meeting the specific needs that we have been able to identify in the market. They are to large to satisfy the distinctive needs of the entire market in terms of innovation and creativity and personalised serviced as well as the simplification of life. They are also slow to react to changes in the business en vironment as well as the new trends and developments in the domain of a function of health and fitness.Industry TrendsIndividual usage of fitness and health disturbance training equipment has increased. carcass work out and exercise has become a daily life routine of many people around the world in the last decade.Fitness memberships are increasingly getting frequent in office environment around the world Companies are including health memberships as part of employee remuneration package.Long- Term ProspectusTo ensure a continual development of the health and fitness industry in the country.To bring on awareness of the increase of obesity and heart deceases in the country and to promote healthy livingMarket analysisJohannesburg is a capital city of Gauteng. It is the major harbor of South African business. All the major companies of business are based in Joburg. The current population of Johannesburg is 11 million. All types of professions are found in Johannesburg. So, it is a competitive advantage to make business in Johannesburg.Market segmentationIt focuses on fitness, health and beauty. Our target market when it comes to the gym, is for everyone especially families and for the beauty spa, our target market are young adults, male and female from the ages of 13-55 years. They have to earn a minimum of R3000 and more. For children between 13 and 20, parents have to be responsible for their membership. The money is going to be deducted every month in the parents accounts, for their childrens membership. The centre and beauty Spa would work very hard to see consumers being satisfied about what the centre demos. Customers behold more value from a good or service that seems to deliver more benefits for money. Market research will cover the following customer needs, cultural elements, social connections, where family members, friends or associates can influence how, what, and when consumers buy, personnel elements, marketers for the fitness centre and bea uty Spa. See opportunity in circulateing young girls who are concentrating on their fearer and looking good when going to work and going out with friends, older women and men who are taking care of their health because of many diseases like obesity, high blood etc. fool market selectionTarget customers the primary customer is children, young adults and adults.These customers are ages 12-65 yearsThere approximately 3000 customers 15% children, 50% young adults and 35 adults.70%percent of young adults and adults are celebrities who spent most of their time at Sandton. Some of them homes are there.Competitors AnalysisOur main competitors are Virgin Active, Planet Fitness and Smart gymSandton Fitness Centre and Beauty Spa is the environment that is created in the facility. Our customers tone of voice more relaxed and comfortable in a program that is focused on them. We have designed the child care center to be visible from the main workout floor. Young mothers can oversee the child p lay while working out. Our main look up is to provide our customer with a direction who will organize each of our members healthy eating program and providing our members with a personal trainer who will ensure that a member do right exercise all the time according to his/her workout planMarketing planSandton Fitness Center will focus on creating a brand design in the Johannesburg and Sandton area. We will Participate in the major events of health care awareness and education programs.Sandton Fitness Center will start by targeting low income segment of market downtown Sandton and Johannesburg area. We will convince people about the benefits and needs of wellness programs. This will be accomplished by aggressively pursuing interaction and relationships with peoples in public health awareness programs and by sending newsletters and emails through Social interactive websites like calculate book, Twitter and Msn and Google messenger.PricingOur prices and promotions are always subject to change especially when we take into account the fluctuating membership enrollments however, for the most part our sign fees for our services will be R300 and R80 monthly for a general membership. We will also offer to customers the woof of paying daily fees. This fee will be R50 charge for a days use of any service that our business provides. In addition we can offer to individuals the option of using exclusively our day spa for just one day. To use this option we will charge a standard fee of R25. For another price option we will give customers the option of paying an annual fee up front for R1, 100, this would be a saving of over R150. This live would benefit us as well considering we will see an pre displace(prenominal) return on our investments allowing us to re-pay our debt quickly. This type of pricing will dance orchestra us over many of our competitors rates however the most of the essence(p) opponent will be outbid. Planet fitness, which comes closest to what we p rovide, will be outbid by over R600 and other competitors do not offer the level of resources that we will sell to our customers. In this way we feel that the service we sell and the price we offer can overcome or compete heavily with every competitor in the market.PromotionPlanWe will attempt to use a variety of strategies in order to make contact with voltage members. A fairly sordid and easily accessible form of advertisement will be the Internet. By running our own website, www.SandtonFitnessCenter.com we can reach a wide variety of customers. This is also a fairly cheap way in which to get our name out since it will only exist our company $9.95 to launch and run the site annually. Another cost effective way to market our name will be to have various sales promotions and use flyers to get the word out. By making use of the following specialtys of communication newspapers, magazines, television and radio as the medium of advertisement. In addition they will print 5,000 broc hures for creating awareness in the market about their health care services they will be distributed in major health care seminars and events where officials from Fitness accession will participate. useable planService Execution TimelineSandton Fitness Center will follow this service execution model to enter in the health club market. General trainer payroll and even provide our members with online scheduling, registration, bill fee and more. Establishing and maintaining membership opportunities is essential to owning successful business and our business may have monthly specials or different membership level in order to maximize sales.Our online registration system allows families to complete registration 34/7 from any internet connected computer. We created custom club sign-up forms and website., process most types of payment, manage room to block and reservations, create name badges, auto sent reminder e-mails and mange our members over complete reports.Business LocationSandton Fitness Centre and Beauty Spar is located in Nelson Mandela Square at Sandton city, is only 25km from Johannesburg international airportTaskFebruaryMarchAprilMayJuneJulyAugustChoosing jamWebsite developmentHiring, training and admin staffAdvertisingOpening of health clubLocationSandton Fitness Center will start its business in main street area of Coral Gables there is presence of already conventional health clubs such as Golds Gym and Coral Gables gameBoot camp.Legal EnvironmentThere are no current legal obligations for Fitness Plus health club. military groupFitness Plus will start with a total of 10 initial staff members that includes owners as well.Facilities and EquipmentFitness Centre offers a large selection of equipmentTreadmills (20)Bicycles (10)SteppersStairmasterBody trekCross aerobic trainerWeightsServicesSandton Fitness Center will provide following health related servicesaerobic exerciseCyclingBoxingYogaPilatesMuscle TrainingDiabetes Obesity ControlBeauty treatments eg. massages, pedicures, manicures, facialsBenefits and FeaturesState of the art facility with latest equipment from quality manufacturersLow cost with monthly, quarterly and annual subscription plans.Personal qualified trainers to help our members achieving results without wasting frequently timeWhy people need this service?Health care and fitness club market in around South Africa have been serving to a high income segment of late. Average income of health club member is R 50000 as of 2006 survey.This leaves a large segment of low-income customers with unmet needs. Fitness Plus will primarily exist to provide health care facility to the lower income class without compromising on quality of service.ChallengesFitness Plus will face a challenging situation in creating its brand image and attracting customers towards their services due to presence of already established players in the local market such asVirgin ActivePlanet FitnessSmartGymFinancial PlanSources of CapitalInvestment essential R5, 000,000Total Investment R5, 000,000Startup ExpensesHealth club development R1, 000, 000Personnel R290, 000Capital Expenditures R500, 000Consulting Services R100, 000Promotion R60, 000Total Start-up Expenses R1, 950, 000Our company, Sandton Fitness Center will meet capital needs by talking to various money sources.These sources will include family members, banks, venture capitalist, and personal savings. We hope to receive R5 million before we even begin our venture. By the first year we will be losing R2.4 million with an expected 1,000 members. By the second year we will have double our member to 2,000 and have a combined divergence of R25 around 2.4 million including the first years losses. By the third year with 3,000 members, we will show a profit of R1 million. We hope by explaining this prognosis to investors they will be convinced of our legitimate venture. Also by covering our belief in the company we each will invest R250,000. We project getting R3 million from venture capitalist and the rest of the money from a bank loan that would be paid off by the fifth year of operation.Pro forma Income StamentProjected IncomeSandton Fitness CenterIncome StatementYEAR1YEAR2YEAR3YEAR4SalesR1,260,000.00R 2,520.000R3,780,000R3,970,000Net salesR1,260,000.00R2,520,000R3,780,000R3,970,000Gross Profit 0R 1,077,520R 1,267,521Operating Expenses payroll department write offR551, 000.00R551, 000R 551,000R 551,000Payroll tax expenseR38, 570.00R38,570R 38,570,R 38,570Bad debts expenseR194, 500.00R194, 500.00R194, 500.00R194, 500.00promotional ExpenseR62, 009.95R62, 009.95R62, 009.95R62, 009.95Office supplies expenseR220, 000.00R220, 000.00R220, 000.00R220, 000.00Utilities expenseR120, 000.00R120, 000.00R120, 000.00R120, 000.00Insurance expenseR200, 000.00R200, 000.00R200, 000.00R200, 000.00In-club enjoymentR1, 000.00R1, 000.00R1, 000.00R1, 000.00Lease costs for buildingR1, 200,000.00R1, 200,000.00R1, 200,000.00R1, 200,000.00Depreciation expense,office equi pmentR15, 400.00R15, 400.00R15, 400.00R15, 400.00Maintenance and repairsexpenseR50, 000.00R50, 000.00R50, 000.00R50, 000.00Miscellaneous sellingexpenseR50, 000.00R50, 000.00R50, 000.00R50, 000.00R2,702,479.95R2,702,479.95R2,702,479.95R2,702,479.95Other Expenses expression of poolR110, 000.00Building of basketballcourtsR350, 000.00Building of tennis courtsR75, 000.00Building of track and indoorsoccer fieldR370, 000.00Spa featuresR120, 000.00R1,025,000.00Net IncomeR 2,467,479.95Projected Balance planing machineYear 2009Year 2010RmRmNon-current assetsIntangible assetsTangible assetsInvestmentsTaxation recoverable237.6121.92.04.9366.4260.3137.52.85.9406.5 sure AssetsInventoriesAmount receivable (debtors)Six-month deposits change and cash equivalents24.3134.790.5249.526.6146.92.0105.3280.8Current liabilitiesAmount account payable(creditors) shore overdraftNet current assetsTotal assets less current liabilities(157.5)(62.6)(220.1)29.4395.8(159.8)(40.1)(199.9)80.9487.4Non-current liabilit iesAmount payable (creditors)Bank and other borrowingsProvisionsNet assets(2.6)0.6(22.2)370.4(2.7)(0.7)(20.2)464.3Capital and reservesShareholders silver370.4464.3Pro forma gold Flows (3-Year)Sandton Fitness Center PlusYear 1 Year 2 Year3Cash receivedCash from OperationsCash Sales R1, 230,000 R4, 940,000 R14,751,000Cash from Receivables R0 R0 R0Subtotal Cash from Operations R1,230,000 R4,940,000 R14,751,000Additional Cash Received hot Borrowing R1,000,000 R0 R0New Other Liabilities (interest-free) $ 0 R0 R0New long-term Liabilities R0 R0 R0Sales of Other Current Assets R0 R0 R0Sales of Long-term Assets $ 0 R0 R0New Investment Received R0 R0 R0Subtotal Cash Received R2,230,000 R4,940,000 R14,751,000ExpendituresExpenditures from OperationsPersonnel R290, 000 R840,000 R940,000Consulting Services R90, 000 R480,000 R480,000Promotion R5,000 R6,000 R6,000Subtotal spend on Operations R385,000 R1,326,000 R1,426,000Additional Cash SpentTaxes R32,290 R338,580 R1,302,500Principal quittanc e of CurrentBorrowing R0 R0 R0Other Liabilities Principal Repayment R0 R0 R0Long-term Liabilities Principal Repayment R0 R0 R0 procure Other Current Assets R0 R0 R0Purchase Long-term Assets R810,000 R810,000 R1,345,000Dividends R0 R0 R0Subtotal Cash Spent R1,227,290 R2,474,580 R4,073,500Net Cash Flow R1,002,710 R2,465,420 R10,677,500Cash Balance R1,012,710 R3,478,130 R14,155,630CONCLUSIONThrough the plan that we have outlined we feel confident that although a very intricate and complex process to start and run such a company, we can accomplish such an challenging endeavor. We have analyzed the market, covered expenses, visualized a goal, and planned accordingly. Our company would be a sound investment because assets and collateral would insure re-payment and hardheaded projections allow for error if they are needed. To be realistic, we cannot guarantee a success, but as the proverb goes, A hero is one who knows how to hang on one minute longer and this is the entrepreneurial spirit that we will subscribe throughout the life of our fitness center.